Lemon Tree Hotels (LEMONTREE) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked record performance in occupancy, ARR, revenue, EBITDA, PBT, PAT, and cash profit, with Q4 FY 2026 being the strongest fourth quarter ever on these parameters.

• Audited standalone and consolidated financial results for the year ended March 31, 2026, were approved, with an unmodified auditor opinion.

• The company is undergoing a demerger, creating two focused entities: an asset-light management company and a hotel ownership/leasing platform.

Financial highlights

• FY 2026 consolidated revenue reached ₹1,44,450.33 lakhs (INR 1,452.7 crore), up 13% year-over-year; Q4 revenue was ₹409.5 crore, up 11%.

• Net EBITDA for FY 2026 was ₹69,933.01 lakhs (INR 699.3 crore), up 10%; Q4 net EBITDA was ₹218.3 crore, up 7%.

• PAT for FY 2026 grew 19% to ₹28,831.82 lakhs (INR 288 crore); Q4 PAT was ₹116.5 crore, up 8%.

• Cash profit for FY 2026 increased 16% to ₹443.1 crore.

• Gross ARR for FY 2026 was ₹6,875; occupancy was 73.5%.

Outlook and guidance

• All future supply is planned under the upper upscale Aurika brand, less impacted by GST changes.

• Expense heads (renovation, tech, GST) expected to reduce to 3.7% of revenue by FY 2028, expanding EBITDA margins.

• Management expects to open about 2,000 rooms in FY 2027, with a similar pace in subsequent years.

• Fee income from managed hotels projected to grow as the pipeline matures.

• Composite Scheme of Arrangement to segregate hotel ownership & development from management & brand business, subject to regulatory approvals.